If you’ve ever dealt with an insurance claim, you know it can be a frustrating experience, especially if your insurance company acts unfairly. One common issue that arises is bad faith. You may be wondering if you can sue your insurance company for bad faith.
Under certain conditions, Wisconsin law allows you to take legal action against your insurer for bad faith.
What does bad faith insurance mean?
Bad faith insurance occurs when an insurer fails to uphold its obligations under the policy. This could mean delaying or denying a claim without a proper investigation or offering a settlement that is far below the value of your claim. In Wisconsin, insurance companies are legally required to handle claims in good faith and deal with you fairly. If they don’t, you have grounds to take legal action.
What are the requirements to sue for bad faith?
To sue for bad faith, you must prove that the insurance company acted unreasonably or dishonestly. Simply disagreeing with their decision isn’t enough. You need evidence that the insurer acted with an intent to deceive or acted recklessly in handling your claim. The courts evaluate the insurer’s actions, including whether they violated the implied duty of good faith and fair dealing.
What are the damages for bad faith insurance?
If you win a bad faith claim, you could be awarded both actual damages and punitive damages. Actual damages refer to the money you should have received under your policy, while punitive damages are intended to punish the insurance company for its actions. Wisconsin allows for punitive damages in bad faith cases if the insurance company’s actions were particularly egregious.
What should you do if you suspect bad faith?
If you suspect your insurance company is acting in bad faith, gather all relevant documents and communications related to your claim. This includes emails, letters, and notes from phone calls. Understanding Wisconsin insurance law can help you understand your options and determine if you have a case.